A report by the Central Bank of Nigeria indicated that bank lending to the private sector had increased to N35.7 trillion by the end of 2021. This report indicates that the Nigerian lending industry has become accessible and available to the private sector even as the economy tries to find balance from the effects of the COVID-19 pandemic.
Currently, the difficult economic situation in Nigeria has created a surge in the demand for quick loans, which has resulted in the creation of many online lending platforms to help people overcome their financial difficulties.
Recently, in an interview, the CEO of P2vest, a leading peer-to-peer online lending platform, Mr. Austin Abolusoro, discussed why peer-to-peer lending is thriving in the fintech space.
“Peer-to-peer lending is going to have a lot of impact on the financial sector and the economy in general because there are people who don’t have access to funds from a financial sector and others who have funds that could be made available to borrow, peer-to-peer connects these individuals together,” Abolusoro said.
He also mentioned the type of community culture that exists in Nigeria that bails out a friend in need and how this has given rise to the latest important feature of the P2vest app – Bail Me. The Bail Me option of the app allows users to ask a friend for loans and also allows people to follow or charge a little extra for borrowing people.
Speaking further, Mr Abolusoro said: “What we have simply done is create a way for friends to loan each other quickly and without delay while keeping track of the money loaned and setting a reminder for the borrower and the lender.”
He reiterated the role of government regulators in controlling and protecting fintech startups, so they can thrive in the industry and boost the country’s economy. “Government regulation can incentivize fintech industry players to do more by protecting them but also protecting investor funding,” he said. This is generally seen as one of the steps to build investor confidence and attract more investors.
With so many new advancements in the Fintech sector, P2vest remains committed to facilitating easy access to loans, connecting lenders and borrowers, and ensuring that borrowers are regulated while lenders are protected.